A Bullish Sign For The Guggenheim Shipping ETF (SEA)

sellbuyMorpheus Trading: After breaking out from a base around $18, and stalling just above $20, Guggenheim Shipping ETF (NYSEARCA:SEA) pulled back to find support at the rising 10-week moving average.

Last week’s price action followed through on the previous week’s bullish reversal candle, but stopped just shy of breaking out to new highs.

Whether $SEA breaks out this week or in a few weeks from now, there is very little overhead above $20. Once it clears that level, it could potentially run to the next major resistance level (around $25):

$SEA BREAKOUT

We remain long iShares MSCI Japan ETF (NYSEARCA:EWJ) from our pullback entry in early October (around $10.70).

Although $EWJ has failed to breakout, the price action has continued to tighten up within the base over the past few weeks, especially above the 50-day moving average.

On the chart below, note the higher “swing lows” during the base as well.

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